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Servcorp

ASX:SRV
Snowflake Description

Flawless balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SRV
ASX
A$332M
Market Cap
  1. Home
  2. AU
  3. Real Estate
Company description

Servcorp Limited provides executive serviced and virtual offices; and coworking and IT, communications, and secretarial services. The last earnings update was 147 days ago. More info.


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SRV Share Price and Events
7 Day Returns
-1.7%
ASX:SRV
-0.1%
AU Real Estate
-0.1%
AU Market
1 Year Returns
-20.2%
ASX:SRV
-20.6%
AU Real Estate
5.2%
AU Market
SRV Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Servcorp (SRV) -1.7% -1.7% 17.7% -20.2% -48.8% -29.2%
AU Real Estate -0.1% 4.6% 9.2% -20.6% 0.5% 5.5%
AU Market -0.1% 2.4% 6.5% 5.2% 19.8% 11.8%
1 Year Return vs Industry and Market
  • SRV matched the Real Estate industry (-20.6%) over the past year.
  • SRV underperformed the Market in Australia which returned 5.2% over the past year.
Price Volatility
SRV
Industry
5yr Volatility vs Market

Value

 Is Servcorp undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Servcorp to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Servcorp.

ASX:SRV Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.5%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:SRV
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Real Estate Unlevered Beta Simply Wall St/ S&P Global 1.05
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.05 (1 + (1- 30%) (0%))
1.034
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.03
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.034 * 5.96%)
8.47%

Discounted Cash Flow Calculation for ASX:SRV using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Servcorp is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:SRV DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 8.47%)
2020 52.12 Est @ -3.02% 48.05
2021 51.38 Est @ -1.42% 43.67
2022 51.23 Est @ -0.3% 40.14
2023 51.47 Est @ 0.48% 37.18
2024 52.00 Est @ 1.03% 34.63
2025 52.74 Est @ 1.42% 32.38
2026 53.63 Est @ 1.68% 30.35
2027 54.63 Est @ 1.87% 28.50
2028 55.73 Est @ 2% 26.81
2029 56.90 Est @ 2.1% 25.23
Present value of next 10 years cash flows A$346.93
ASX:SRV DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$56.90 × (1 + 2.31%) ÷ (8.47% – 2.31%)
A$945.01
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$945.01 ÷ (1 + 8.47%)10
A$419.05
ASX:SRV Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$346.93 + A$419.05
A$765.98
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$765.98 / 96.82
A$7.91
ASX:SRV Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$7.91
Current discount Discount to share price of A$3.52
= -1 x (A$3.52 - A$7.91) / A$7.91
55.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Servcorp is available for.
Intrinsic value
>50%
Share price is A$3.52 vs Future cash flow value of A$7.91
Current Discount Checks
For Servcorp to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Servcorp's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Servcorp's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Servcorp's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Servcorp's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:SRV PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$-0.06
ASX:SRV Share Price ** ASX (2019-07-18) in AUD A$3.52
Australia Real Estate Industry PE Ratio Median Figure of 25 Publicly-Listed Real Estate Companies 11.54x
Australia Market PE Ratio Median Figure of 546 Publicly-Listed Companies 16.19x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Servcorp.

ASX:SRV PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:SRV Share Price ÷ EPS (both in AUD)

= 3.52 ÷ -0.06

-63.85x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Servcorp is loss making, we can't compare its value to the AU Real Estate industry average.
  • Servcorp is loss making, we can't compare the value of its earnings to the Australia market.
Price based on expected Growth
Does Servcorp's expected growth come at a high price?
Raw Data
ASX:SRV PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -63.85x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
50%per year
Australia Real Estate Industry PEG Ratio Median Figure of 11 Publicly-Listed Real Estate Companies 0.6x
Australia Market PEG Ratio Median Figure of 361 Publicly-Listed Companies 1.34x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Servcorp, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Servcorp's assets?
Raw Data
ASX:SRV PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$2.40
ASX:SRV Share Price * ASX (2019-07-18) in AUD A$3.52
Australia Real Estate Industry PB Ratio Median Figure of 38 Publicly-Listed Real Estate Companies 1.02x
Australia Market PB Ratio Median Figure of 1,693 Publicly-Listed Companies 1.68x
ASX:SRV PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:SRV Share Price ÷ Book Value per Share (both in AUD)

= 3.52 ÷ 2.40

1.46x

* Primary Listing of Servcorp.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Servcorp is overvalued based on assets compared to the AU Real Estate industry average.
X
Value checks
We assess Servcorp's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Real Estate industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Real Estate industry average (and greater than 0)? (1 check)
  5. Servcorp has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Servcorp expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
50%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Servcorp expected to grow at an attractive rate?
  • Servcorp's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Servcorp's earnings growth is expected to exceed the Australia market average.
  • Servcorp's revenue growth is positive but not above the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:SRV Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:SRV Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 50%
ASX:SRV Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 1%
Australia Real Estate Industry Earnings Growth Rate Market Cap Weighted Average 14.2%
Australia Real Estate Industry Revenue Growth Rate Market Cap Weighted Average 1.4%
Australia Market Earnings Growth Rate Market Cap Weighted Average 7.3%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:SRV Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:SRV Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-06-30 328 26 1
2020-06-30 323 25 1
2019-06-30 320 23 1
ASX:SRV Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 320 54 -5
2018-09-30 315 52 2
2018-06-30 310 50 10
2018-03-31 310 53 18
2017-12-31 310 57 25
2017-09-30 313 56 33
2017-06-30 317 54 41
2017-03-31 320 54 40
2016-12-31 323 53 39
2016-09-30 323 57 39
2016-06-30 322 61 40
2016-03-31 312 58 38

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Servcorp's earnings are expected to grow significantly at over 20% yearly.
  • Servcorp's revenue is expected to grow by 1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:SRV Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Servcorp Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:SRV Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-06-30 0.27 0.27 0.27 1.00
2020-06-30 0.25 0.25 0.25 1.00
2019-06-30 0.24 0.24 0.24 1.00
ASX:SRV Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 -0.06
2018-09-30 0.02
2018-06-30 0.10
2018-03-31 0.18
2017-12-31 0.26
2017-09-30 0.33
2017-06-30 0.41
2017-03-31 0.41
2016-12-31 0.40
2016-09-30 0.40
2016-06-30 0.40
2016-03-31 0.38

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Servcorp is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Servcorp's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Servcorp has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Servcorp performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Servcorp's growth in the last year to its industry (Real Estate).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Servcorp does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Servcorp's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Servcorp's 1-year growth to the AU Real Estate industry average as it is not currently profitable.
Earnings and Revenue History
Servcorp's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Servcorp Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:SRV Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 319.70 -5.35 45.66
2018-09-30 314.85 2.36 42.65
2018-06-30 310.00 10.06 39.63
2018-03-31 310.09 17.65 38.56
2017-12-31 310.18 25.24 37.50
2017-09-30 313.43 32.98 38.95
2017-06-30 316.68 40.71 40.40
2017-03-31 320.04 39.88 42.07
2016-12-31 323.39 39.06 43.75
2016-09-30 322.59 39.39 43.90
2016-06-30 321.80 39.72 44.06
2016-03-31 312.17 37.78 44.64
2015-12-31 302.55 35.83 45.22
2015-09-30 285.73 34.48 43.57
2015-06-30 268.91 33.14 41.92
2015-03-31 256.97 31.85 39.54
2014-12-31 245.02 30.56 37.16
2014-09-30 239.65 28.45 37.17
2014-06-30 234.28 26.34 37.19
2014-03-31 224.62 24.80 36.29
2013-12-31 214.95 23.25 35.40
2013-09-30 207.15 22.26 34.26
2013-06-30 199.34 21.27 33.12
2013-03-31 197.49 19.75 32.75
2012-12-31 195.65 18.24 32.38
2012-09-30 194.22 16.52 32.40

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Servcorp has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Servcorp has efficiently used its assets last year compared to the AU Real Estate industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Servcorp improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Servcorp's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Real Estate industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Servcorp has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Servcorp's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Servcorp's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Servcorp is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Servcorp's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Servcorp's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Servcorp has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Servcorp Company Filings, last reported 6 months ago.

ASX:SRV Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 232.72 0.00 71.81
2018-09-30 232.72 0.00 71.81
2018-06-30 250.17 0.52 97.14
2018-03-31 250.17 0.52 97.14
2017-12-31 255.09 0.81 109.90
2017-09-30 255.09 0.81 109.90
2017-06-30 267.18 1.12 108.85
2017-03-31 267.18 1.12 108.85
2016-12-31 262.71 1.44 102.22
2016-09-30 262.71 1.44 102.22
2016-06-30 261.02 1.58 100.60
2016-03-31 261.02 1.58 100.60
2015-12-31 249.77 3.67 93.11
2015-09-30 249.77 3.67 93.11
2015-06-30 241.90 7.93 100.56
2015-03-31 241.90 7.93 100.56
2014-12-31 230.07 5.68 95.09
2014-09-30 230.07 5.68 95.09
2014-06-30 217.10 4.06 94.96
2014-03-31 217.10 4.06 94.96
2013-12-31 215.74 2.56 101.63
2013-09-30 215.74 2.56 101.63
2013-06-30 207.90 0.00 102.74
2013-03-31 207.90 0.00 102.74
2012-12-31 198.19 0.00 95.86
2012-09-30 198.19 0.00 95.86
  • Servcorp has no debt.
  • Servcorp has no debt compared to 5 years ago when it was 1.2%.
  • Servcorp has no debt, it does not need to be covered by operating cash flow.
  • Servcorp has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Servcorp's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Servcorp has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Servcorp's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
7.39%
Current annual income from Servcorp dividends. Estimated to be 6.32% next year.
If you bought A$2,000 of Servcorp shares you are expected to receive A$148 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Servcorp's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.51%).
  • Servcorp's dividend is above the markets top 25% of dividend payers in Australia (5.74%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:SRV Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
Australia Real Estate Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 3.6%
Australia Market Average Dividend Yield Market Cap Weighted Average of 415 Stocks 4%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.5%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:SRV Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2021-06-30 0.23 1.00
2020-06-30 0.22 1.00
2019-06-30 0.21 1.00
ASX:SRV Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-21 0.260 8.375
2018-08-22 0.260 7.755
2018-02-21 0.260 5.835
2017-08-22 0.260 4.630
2017-02-21 0.260 4.330
2016-08-16 0.220 2.931
2016-02-22 0.220 3.154
2015-08-25 0.220 3.181
2015-02-19 0.220 3.638
2015-02-18 0.220 3.766
2014-08-25 0.220 4.065
2014-02-18 0.180 3.846
2013-08-26 0.150 3.812
2013-02-20 0.214 6.050
2012-08-27 0.150 4.555
2012-02-20 0.150 5.252
2011-08-24 0.150 5.447
2011-02-23 0.100 3.428
2010-08-26 0.100 3.248
2010-02-25 0.100 3.139
2010-02-24 0.100 3.148
2009-08-20 0.250 6.739
2009-02-19 0.250 9.109
2008-08-21 0.200 6.808

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Servcorp's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.2x coverage).
X
Income/ dividend checks
We assess Servcorp's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Servcorp afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Servcorp has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Servcorp's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Alf Moufarrige
COMPENSATION A$516,864
TENURE AS CEO 19.9 years
CEO Bio

Mr. Alfred George Moufarrige, also known as Alf, AO has been the Chief Executive Officer and Managing Director of ServCorp Limited since August 24, 1999. Mr. Moufarrigeis primarily responsible for Servcorp’s expansion, profitability, cash generation and currency management. He has been an Executive Director of ServCorp Limited since August 24, 1999. Mr. Moufarrige is one of the global leaders in the serviced office industry, with over 40 years of experience.

CEO Compensation
  • Alf's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Alf's remuneration is about average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Servcorp management team in years:

9
Average Tenure
  • The average tenure for the Servcorp management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Alf Moufarrige

TITLE
Founder
COMPENSATION
A$517K
TENURE
19.9 yrs

Anton Clowes

TITLE
Chief Financial Officer
COMPENSATION
A$324K
TENURE
3.3 yrs

Taine Moufarrige

TITLE
Executive Officer
COMPENSATION
A$580K

Olga Vlietstra

TITLE
General Manager of Japan
COMPENSATION
A$810K

Liane Gorman

TITLE
General Manager of Australia & New Zealand
COMPENSATION
A$400K
TENURE
9 yrs

Laudy Lahdo

TITLE
General Manager of Middle East
COMPENSATION
A$436K

Daniel Kukucka

TITLE
Chief Technology Officer

Matthew Baumgartner

TITLE
Chief Information Officer

Warren James

TITLE
Chief Property Officer

Steve Gainer

TITLE
Head of Global Accounts - Japan
Board of Directors Tenure

Average tenure and age of the Servcorp board of directors in years:

19.8
Average Tenure
69
Average Age
  • The average tenure for the Servcorp board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Robert Corlett

TITLE
Chairman of the Board
COMPENSATION
A$175K
AGE
74
TENURE
19.8 yrs

Alf Moufarrige

TITLE
Founder
COMPENSATION
A$517K
TENURE
19.9 yrs

Rick Holliday-Smith

TITLE
Independent Non-Executive Director
COMPENSATION
A$110K
AGE
69
TENURE
19.8 yrs

Mark Anthony Vaile

TITLE
Independent Non-Executive Director
COMPENSATION
A$100K
AGE
63
TENURE
8.1 yrs

Wallis Graham

TITLE
Independent Non-Executive Director
COMPENSATION
A$75K
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Servcorp individual insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
17. May 19 Buy Mark Anthony Vaile Individual 16. May 19 16. May 19 7,670 A$3.15 A$24,165
10. Apr 19 Buy FMR LLC Company 15. Jan 19 08. Apr 19 913,474 A$3.07 A$2,579,256
08. Mar 19 Buy Sovori Pty Ltd Company 06. Mar 19 06. Mar 19 90,017 A$3.10 A$279,053
27. Feb 19 Buy Alfred Moufarrige Individual 25. Feb 19 25. Feb 19 500,000 A$3.18 A$1,587,704
18. Dec 18 Buy Robert Corlett Individual 14. Dec 18 14. Dec 18 560 A$2.70 A$1,512
17. Dec 18 Buy FMR LLC Company 15. Oct 18 13. Dec 18 734,720 A$3.90 A$2,867,465
26. Nov 18 Buy Robert Corlett Individual 21. Nov 18 21. Nov 18 10,000 A$3.05 A$30,500
20. Nov 18 Buy Robert Corlett Individual 20. Nov 18 20. Nov 18 11,000 A$3.28 A$36,075
13. Nov 18 Buy Sovori Pty Ltd Company 07. Nov 18 07. Nov 18 200,000 A$4.00 A$800,000
X
Management checks
We assess Servcorp's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Servcorp has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Looking At Servcorp Limited (ASX:SRV) From All Angles

Investors should not worry about SRV’s debt levels because the company has none! … ASX:SRV Historical Debt, July 9th 2019 SRV’s reputation for being one of the best dividend payers in the market is supported by the fact that it has been steadily growing its dividend payments over the past ten years and currently is one of the top yielding companies on the markets, at 7.3%. … ASX:SRV Historical Dividend Yield, July 9th 2019 Next Steps: For Servcorp, I've compiled three fundamental aspects you should further examine: Future Outlook: What are well-informed industry analysts predicting for SRV’s future growth?

Simply Wall St -

Investors Who Bought Servcorp (ASX:SRV) Shares Three Years Ago Are Now Down 55%

Truth be told the share price declined 55% in three years and that return, Dear Reader, falls short of what you could have got from passive investing with an index fund. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Over the three years that the share price declined, Servcorp's earnings per share (EPS) dropped significantly, falling to a loss.

Simply Wall St -

Are Dividend Investors Getting More Than They Bargained For With Servcorp Limited's (ASX:SRV) Dividend?

Is Servcorp Limited (ASX:SRV) a good dividend stock? … Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. … Dividend Growth Potential With a relatively unstable dividend, it's even more important to evaluate if earnings per share (EPS) are growing - it's not worth taking the risk on a dividend getting cut, unless you might be rewarded with larger dividends in future. In the last five years, Servcorp's earnings per share have shrunk at approximately 12% per annum. If earnings continue to decline, the dividend may come under pressure. Every investor should make an assessment of whether the company is taking steps to stabilise the situation. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

What Kind Of Investor Owns Most Of Servcorp Limited (ASX:SRV)?

Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … We also tend to see lower insider ownership in companies that were previously publicly owned. … Taking a look at our data on the ownership groups (below), it's seems that

Simply Wall St -

How Many Servcorp Limited (ASX:SRV) Shares Did Insiders Buy, In The Last Year?

Servcorp Insider Transactions Over The Last Year. … That means that an insider was happy to buy shares at above the current price of AU$2.66. … Over the last year, we can see that insiders have bought 542k shares worth AU$1.7m

Simply Wall St -

A Look At Servcorp Limited's (ASX:SRV) Exceptional Fundamentals

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … that has been able to sustain great financial health over the past

Simply Wall St -

Introducing Servcorp, The Stock That Slid 58% In The Last Three Years

Long term Servcorp Limited (ASX:SRV) shareholders know that all too well, since the share price is down considerably over three years. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … But it's safe to say we'd generally expect the share price to be lower as a result.

Simply Wall St -

Does Servcorp Limited's (ASX:SRV) CEO Salary Compare Well With Others?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … Check out our latest analysis for Servcorp? … How Does Alf Moufarrige's Compensation Compare With Similar Sized Companies?

Simply Wall St -

With A 4.0% Return On Equity, Is Servcorp Limited (ASX:SRV) A Quality Stock?

This article is for those who would like to learn about Return On Equity (ROE). … Our data shows Servcorp has a return on equity of 4.0% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Read This Before Selling Servcorp Limited (ASX:SRV) Shares

So before you buy or sell Servcorp Limited (ASX:SRV), you may well want to know whether insiders have been buying or selling. … It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. … In the last twelve months, the biggest single purchase by an insider was when Chairman of the Board Robert Corlett bought AU$82k worth of shares at a price of AU$4.08 per share.

Simply Wall St -

Company Info

Description

Servcorp Limited provides executive serviced and virtual offices; and coworking and IT, communications, and secretarial services. Its serviced offices include furnished CBD office suites with a receptionist, meeting rooms, IT infrastructure, and support services; and virtual offices provide services, facilities, and IT to businesses. The company operates in Australia, New Zealand, Southeast Asia, the United States, Europe, the Middle East, North Asia, and internationally. Servcorp Limited was founded in 1978 and is headquartered in Sydney, Australia.

Details
Name: Servcorp Limited
SRV
Exchange: ASX
Founded: 1978
A$332,085,355
96,817,888
Website: http://www.servcorp.com
Address: Servcorp Limited
MLC Centre,
Level 63,
Sydney,
New South Wales, 2000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX SRV Ordinary Shares Australian Securities Exchange AU AUD 06. Dec 1999
CHIA SRV Ordinary Shares Chi-X Australia AU AUD 06. Dec 1999
Number of employees
Current staff
Staff numbers
818
Servcorp employees.
Industry
Real Estate Operating Companies
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/18 10:31
End of day share price update: 2019/07/18 00:00
Last estimates confirmation: 2019/06/21
Last earnings filing: 2019/02/21
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.